Stockholm · 2 STOCKHOLM HOTEL REPORT 2018 STOCKHOLM HOTEL REPORT 2018 3 Summary 2017 was a record year. The City of Stockholm added 1,840 new rooms, which was a 7.6 percent increase

Stockholm Hotel Report 2018

S T O C K H O L M H O T E L R E P O R T 2018 S T O C K H O L M H O T E L R E P O R T 20182 3

Summary

2017 was a record year. The City of Stockholm added 1,840 new rooms, which was a 7.6 percent increase on the previous year.

Growth in demand has been very positive in recent years. Despite a substantial increase in the number of rooms in the City of Stockholm last year, ADR rose, while there was a slight decline in the occupancy rate. RevPAR was recorded at SEK 879, which is a historically high level.

Over the next five years a further 4,900 rooms will be added to the hotel market in the county, 1,200 of which will be in the City of Stockholm.

According to Annordia’s forecast, demand will continue to develop at a healthy rate over the next few years and RevPAR is projected to be almost SEK 1,000 in the City of Stockholm by 2022. Annordia is therefore of the opinion that there is scope for an additional 1,000 new rooms in the city up until 2022.

Hostels, holiday villages and campsites account for approximately 10 percent of the total number of guest nights in Stockholm County.

The number of guest nights booked via Airbnb accounted for 4 percent of the number of guest nights at hotels in the City of Stockholm last year. The number of guest nights for Airbnb rentals rose by over 20 percent in 2017 compared with 2016, which is around 15 percentage points higher than for hotels in the city over the same period.

Together, the 10 largest operators in Stockholm County run one-quarter of the county’s hotels, corresponding to over half of all rooms. In addition, one-third of the supply of rooms belongs to the two largest operators.

Cover photo: At Six


1 . S U P P LY / 1 2

2 . D E M A N D / 1 6

3 . F U T U R E S U P P LY / 2 0

4 . F O R E C A S T 2 0 1 8 – 2 0 2 2 / 2 4

5 . H O S T E L S , H O L I D AY V I L L A G E S A N D C A M P S I T E S / 3 0

6 . P 2 P P L AT F O R M S / 3 4

7 . L A R G E S T O P E R ATO R S I N T H E C O U N T Y / 3 8

Contents

Photo: Invest Stockholm, Henrik Trygg


Introduction

Stockholm is one of Europe’s fastest-growing cities, with 2.3 million inhabitants in Stockholm County (2017), 950,000 of whom live in the City of Stockholm. With more than 14 million commercial guest nights for all types of establishment in 2017, Stockholm ranks 12th among European cities.

Stockholm is Sweden’s growth engine for both business and private travellers and the number of guest nights in the county has increased for 10 consecutive years. Between 2000 and 2017 Swedish GDP increased by an average of 2.3 percent a year. This means Swedish economic growth has been surpassed by the annual rate of growth in commercial guest nights in the City of Stockholm, which was 4.7 percent for the same period.

Photo: Invest Stockholm, Helén Pe


BackgroundThis report was produced against the backdrop of Stockholm’s strong growth as a tourist destination and increased demand for accommodation. With regard to “the need for more hotels in Stockholm,” the Municipal Executive Board has commissioned Stockholm Business Region (SBR) to produce a com-bined report on all existing and planned opportu-nities for overnight stays in the City of Stockholm. SBR subsidiary Invest Stockholm is producing a complementary forecast of required hotel rooms for

2018–2022 in the City of Stockholm, and an analy-sis of the growing market for private rental. This year we have dedicated more space to hotels than other types of establishment as almost 90 percent of all commercial guest nights are spent at hotels. This report therefore has a separate chapter on holiday villages, campsites and hostels. The report concludes with a description of the county’s largest hotel operators.

SBR markets and develops Stockholm as a business location and tourist destination with the aim of making Stockholm Europe’s leading sustainable growth region. SBR is wholly owned by the City of Stockholm and is part of Stockholms Stadshus AB. The company has two subsidiaries, Invest Stockholm and Visit Stockholm.

This report was produced by Annordia on behalf of Invest Stockholm. Annordia is a full service agency for investment in hotel properties. As a full service agency, Annordia helps its clients throughout all phases of the investment cycle. From market analysis and concept development, to rent setting, operator recruitments and sales.

4.7%A N N U A L R AT E O F G R O W T H I N

C O M M E R C I A L G U E S T N I G H T S I N T H E C I T Y

B E T W E E N 2 0 0 0 A N D 2 0 1 7 .

Kista. Photo: Invest Stockholm, Yanan Li.

Photo: Invest Stockholm, Helén Pe

S T O C K H O L M H O T E L R E P O R T 2018 S T O C K H O L M H O T E L R E P O R T 201810 11Photo: Hobo Hotel


Photo: Downtown Camper by Scandic

Since 2008, supply in the City of Stockholm has in-creased by around 6,300 hotel rooms, or around 42 percent. Over the same period, the supply of hotel rooms in the county outside the City of Stockholm has risen by around 30 percent.

Stronger growth in the cityThe historical capacity increase in the City of Stock-holm averages 700 rooms a year. In this respect, 2017 was a record year as the city’s hotel stock was expand-ed by over 1,800 rooms, an increase of 7.6 percent on the previous year. For a capacity increase of that level you have to go back to 2011, when capacity rose by over 8 percent for the year.

The largest additions in 2017 were the reopen-ing of the previous Scandic Sergel Plaza, now called Downtown Camper by Scandic, and the two sis-ter hotels At Six and Hobo Hotel, which opened in parts of Swedbank’s former headquarters. All three hotels are only a stone’s throw from one another on Brunkebergstorg in central Stockholm. Together, they increased the city’s hotel capacity by over 1,000 new rooms. For Stockholm County outside the city, ca-

pacity increased by around 2 percent in 2017, which is just under the average for the past 10 years. The county as a whole experienced a capacity increase of 5.6 percent in 2017, which is slightly below the last peak in 2011.

Larger hotels in central locationsTwo-thirds of the hotels in the City of Stockholm are run by hotel chain operators, with the remainder run by independent operators. The county’s largest hotel is Clarion Hotel Sign with 558 rooms, followed by Clarion Hotel Stockholm with 532 rooms and Quality Hotel Globe with 527 rooms. The size of hotels in terms of the number of rooms averages 132 in the City of Stockholm and 112 in the county as a whole.

Supply

T H E R E A R E C U R R E N T L Y 1 7 2 H O T E L S A N D A L M O S T 2 2 , 8 0 0 R O O M S

I N T H E C I T Y O F S T O C K H O L M . T H E C O R R E S P O N D I N G F I G U R E S F O R T H E

C O U N T Y, E X C L U D I N G T H E C I T Y, A R E 1 5 8 H O T E L S A N D S O M E 1 4 , 2 0 0

R O O M S . T H U S , T H E C I T Y A C C O U N T S F O R A P P R O X I M AT E L Y 6 2 P E R C E N T

O F T H E T O TA L S U P P L Y O F R O O M S I N S T O C K H O L M C O U N T Y.

1.

1, 840R O O M S A D D E D I N T H E C I T Y O F

S T O C K H O L M I N 2 0 1 7 .

Photo: Sheraton Stockholm Hotel

In the City of Stockholm, around half the hotels have fewer than 100 rooms, but this is also where the larg-est hotels are located – around 40 hotels in the city have 200 rooms or more. Establishments are slightly smaller in the county, with two-thirds of hotels hav-ing fewer than 100 rooms and only 15 hotels having more than 200 rooms. Of these, four are located near Arlanda Airport.

Hotels with varying service offeringsOne way of classifying hotels is to base it on the type and level of service they provide. The hotel market in the City of Stockholm is dominated by hotels in the full service segment, which accounts for just over 68 percent of the total supply of rooms. This is followed by select service hotels with 11 percent and limited service with 8 percent of the supply of rooms. Select service hotels offer similar facilities and services as full service hotels, but to a lesser extent. Limited ser-vice hotels are characterised by their usually smaller size, management by independent hotel operators, a

lack of restaurant and the offer of only basic services.In the City of Stockholm, 9 out of 10 available hotel rooms come under these three categories, which can

be described as traditional hotels. The figure for the county outside the city is 5 out of 10. Where a ho-tel offers more than just overnight stays, they may be classified as a resort, convention, conference centre or extended stay. These types of hotel are located to a greater extent in the county outside the city. They

NO. HOTEL ROOMS

1 CLARION HOTEL SIGN 558

2 CLARION HOTEL STOCKHOLM 532

3 QUALITY HOTEL GLOBE 527

4 DOWNTOWN CAMPER BY SCANDIC 494

5 SHERATON STOCKHOLM HOTEL 465

TO P 5 H OT E L S W I T H T H E L A R G E S T N U M B E R O F R O O M S I N S TO C K H O L M

The minimum requirement to

be classified in the full service

category is to have an à la carte

restaurant that is open to the public

at least five evenings week.

These hotels often have other

facilities such as meeting rooms

and recreation spaces.

CITY OF STOCKHOLM

ROOMS % OF TOTAL

COUNTY EXCL. CITY

ROOMS % OF TOTAL

STOCKHOLM COUNTY

ROOMS % OF TOTAL

FULL SERVICE 78 15,572 68% 36 5,648 40% 114 21,220 58%

SELECT SERVICE 27 2,544 11% 14 591 4% 41 3,135 8%

LIMITED SERVICE 40 1,707 8% 16 522 4% 56 2,229 6%

RESORT 0 0 0% 8 839 6% 8 839 2%

CONVENTION 3 961 4% 1 414 3% 4 1,375 4%

CONFERENCE CENTRE 7 256 1% 70 4,955 35% 77 5,211 14%

EXTENDED STAY 17 1,722 8% 13 1,189 8% 30 2,911 8%

TOTAL 172 22,762 100% 158 14,158 100% 330 36,920 100%

TYPES OF HOTEL IN C I TY OF STOCKHOLM, STOCKHOLM COUNTY EXCL . C I TY AND TOTAL FOR STOCKHOLM COUNTY

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research


often constitute a destination in themselves and offer an experience or fulfil a function that means they at-tract a certain category of guest, such as spa guests for a resort or conference guests for a conference centre.

It is worth noting that there are eight resort hotels in the county, but none of them are located in the City of Stockholm. In addition, the conference seg-ment accounts for 35 percent of the supply of rooms in the county outside the city, but for only 1 percent of hotel rooms in the City of Stockholm. The ex-tended stay category has increased its market share in recent years, partly as a result of there being a signif-icant need for quickly available accommodation for workers travelling to the Stockholm region.

Classification of hotelsHotelstars Union is a Europe-wide organisation that de-termines the classification standard for hotels in mem-ber countries. In Sweden, Visita, through its subsidiary Sveklass, is responsible for hotel classification. A num-ber of hotels in Sweden, however, are not included in this classification. For example, it does not include ho-

tels that are part of Scandic Hotels and Nordic Choice Hotels. The hotels listed in the table on the next page represent a selection of existing hotels in the City of Stockholm, classified according to the Europe-wide classification criteria of 1–5 stars. To allow meaningful comparisons, Annordia has made its own assessment where a hotel does not have an official ranking.

Hotelstars Union published new hotel classification criteria in 2015. Annordia has selected the following of these criteria and mainly used these in assessing hotels with no star classification: manning of recep-tion, restaurant and bar, other facilities provided and overall standard.

114F U L L S E R V I C E H O T E L S

I N S T O C K H O L M C O U N T Y.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CITY OF STOCKHOLM 7.1% 3.1% 4.2% 8.1% 6.5% -0.2% 2.3% 1.5% 2.9% 7.6%

STOCKHOLM COUNTY EXCL. CITY 0.7% -1.1% 4.4% 2.7% 3.8% 7.3% 4.3% 0.1% 3.2% 2.2%

STOCKHOLM COUNTY 4.5% 1.5% 4.3% 6.0% 5.5% 2.5% 3.1% 0.9% 3.0% 5.6%

P E R C E N TA G E I N C R E A S E I N AVA I L A B L E R O O M S 2 0 0 8 – 2 0 1 7

3 % O F K I S TA’ S T O TA L R O O M S U P P L Y B E L O N G S T O E X T E N D E D

S TAY H O T E L S , W H I C H I S R AT H E R L O W C O N S I D E R I N G T H E P R E S E N C E O F L A R G E

B U S I N E S S C L U S T E R S I N K I S TA . I T W I L L H O W E V E R I N C R E A S E S O O N W H E N

S T U D I O H O T E L O P E N S W I T H 1 6 7 N E W A PA R T M E N T S .

C L A S S I F I C AT I O N O F H OT E L S I N C I T Y O F S TO C K H O L MT H E TA B L E S H O W S A S E L E C T I O N O F H O T E L S I N E A C H S TA R C AT E G O R Y

HOTEL NO. OF STARS NO. OF ROOMS DISTRICT**

GRAND HÔTEL 5 278 CBD

HOTEL DIPLOMAT 5 130 CBD

NOBIS HOTEL 5 201 CBD

ETT HEM STOCKHOLM* 5 12 Ö

SHERATON STOCKHOLM HOTEL* 5 465 VG

BERNS HOTEL 4 82 CBD

BEST WESTERN PLUS TIME HOTEL 4 144 N

ELITE EDEN PARK HOTEL 4 124 CBD

HOTEL SKEPPSHOLMEN 4 77 N

VILLA KÄLLHAGEN 4 36 Ö

BEST WESTERN AND HOTEL 3 201 CBD

IBIS STYLES STOCKHOLM ODENPLAN 3 76 N

HOTELL HELLSTENS MALMGÅRD 3 49 S

LÅNGHOLMEN HOTELL 3 102 S

REX HOTEL 3 55 N

REX PETIT 2 22 N

WASA PARK HOTEL* 2 16 N

HOTELL BEMA* 2 12 N

HOTELL TRE SMÅ RUM* 2 7 S

RENSTIERNA HOTELL & VANDRARHEM* 2 10 S

REIMERSHOLME HOTEL* 1 40 S

HOTEL MICRO* 1 33 N

HOTEL HORNSGATAN* 1 17 S

*Unclassified hotel. Classification carried out in 2018 by Annordia based on Hotelstars Union’s classification criteria. Emphasis has been placed on a hotel’s offering of facilities and services, and its overall standard.

**Division of central Stockholm. Central Stockholm is divided into the districts Kungsholmen (K), Norrmalm (N), Östermalm (Ö) and Södermalm (S). In addition to the geographic division of central Stockholm, two other hotel clusters have been defined: Central Business District (CBD) and Vasagatan (VG). CBD comprises all of the Old Town and parts of Norrmalm and Östermalm, including Olof Palmes gata and Birger Jarlsgatan, respectively. Vasagatan runs through CBD and mainly comprises a cluster of large business hotels.

Source: Hotelstars Union, Visita, Annordia Research

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

Photo: Miss Clara by Nobis


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

January Mars May July September November

2008 2012 2017

Rooms soldThe number of hotel rooms sold in Stockholm Coun-ty amounted to just over 8 million in 2017, which is around 2.5 million more than in the forecast period’s first year, 2008. This means the average daily rate (ADR) of growth has been 4.2 percent a year. The

growth rate has varied in line with the prevailing eco-nomic conditions. The deep financial crisis of 2009 re-sulted in the number of rooms sold decreasing by 3.6 percent in the county as a whole and by 0.3 percent in the City of Stockholm. Fluctuations in demand in the county have been strongest outside the City of Stock-holm, which is due to the ‘overflow effect’. The higher occupancy and price in centrally located hotels, the fur-ther out from these areas demand spreads. This effect was strongest in the years following 2010 and 2013. In 2012-2015 the number of rooms sold increased in the county outside the City of Stockholm at a higher rate than in the city, owing to increased capacity utili-sation in Stockholm. When supply in central Stock-holm increased in the following years the occupancy rate fell, which had a negative effect on the growth rate of rooms sold in the surrounding municipalities. The City of Stockholm has generally shown a slightly more even rate of growth and less variation in the number of rooms sold than in the rest of the county over the 10-year period studied.

Occupancy rateThe occupancy rate shows what percentage of total room capacity is used for a given period of time. In ad-dition to demand, occupancy is also affected by chang-es in supply. Changes in the occupancy rate have been similar over the past 10 years in the county, the City of Stockholm and in the surrounding municipalities.

The decrease in 2009 was followed by a brief recovery, but due to the extended economic down-turn it was not until 2013 that the increase in demand became sufficiently stable that the occupancy rate also started to rise. As described previously, the mar-ket was not able to fully adapt to the large increase in supply in 2017, which had an adverse effect on occupancy.

In the City of Stockholm, occupancy was highest in 2016 at 73.2 percent. Over the entire 10-year peri-od, occupancy has increased more in other municipal-ities in the county than in the City of Stockholm, with

Demand

A T O TA L O F A P P R O X I M AT E L Y 8 M I L L I O N R O O M S W E R E S O L D I N

S T O C K H O L M C O U N T Y I N 2 0 1 7 . O F A L L H O T E L R O O M S S O L D , A L M O S T

7 0 P E R C E N T W E R E I N T H E C I T Y O F S T O C K H O L M . T H E O C C U PA N C Y R AT E ,

A D R A N D R E V PA R H AV E S H O W N S T R O N G D E V E L O P M E N T I N R E C E N T

Y E A R S , B O T H I N T H E C I T Y O F S T O C K H O L M A N D I N T H E C O U N T Y.

2.

C H A N G E I N R O O M S S O L D, % 2 0 0 8 – 2 0 1 7

68%O F A L L H O T E L R O O M S

S O L D I N T H E C O U N T Y A R E L O C AT E D

I N T H E C I T Y O F S T O C K H O L M .

average growth figures of 1.2 percent and 0.2 percent a year, respectively.

In the county, the occupancy rate increased by around 3.5 percentage points, with the increase due to the county’s other municipalities, which increased their occupancy rate by a strong 5.7 percentage points between 2008 and 2017. Growth, however, has taken place from different levels, as the occupancy rate in the City of Stockholm has historically been around 20 percentage points above the occupancy rate in the rest of the county. However, the difference has de-creased slightly in recent years.

ADRThe ADR per room sold in the City of Stockholm last year was SEK 1,233, which corresponds to an increase of just under 7 percent since 2008. The majority of the increase came at the end of the period following a slow recovery since the financial crisis year of 2009. The corresponding increase in Stockholm County was around 4 percent and ADR for 2017 was SEK 1,154, which means that Stockholm County as a whole is at the ADR level that the City of Stockholm had 10 years ago. Stockholm County’s, excluding City of Stock-holm, ADR for 2017 was marginally down on 2008 at SEK 1,016.

N U M B E R O F R O O M S S O L D O N A M O N T H LY B A S I SI N 2 0 0 8 , 2 0 1 2 , 2 0 1 7

1 . I N T H E F I R S T Q U A R T E R O F 2 0 1 7 A R O U N D 8 0 0 R O O M S O P E N I N T H E C I T Y O F S T O C K H O L M .2 . A N E V E N T F U L M AY W I T H S I X C O N C E R T S A N D

T H E U E FA E U R O PA L E A G U E F I N A L AT T R A C T G U E S T S F R O M FA R A F I E L D .3 . I N A U T U M N 2 0 1 7 A R O U N D 1 , 0 0 0 R O O M S A R E A D D E D I N T H E C I T Y O F S T O C K H O L M .

1 .

2 . 3 .


Photo: Häringe Slott in Västerhaninge

-15%

-10%

-5%

0%

5%

10%

15%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

County excl. city Stockholm CountyCity of Stockholm



RevPARRevenue per available room in the City of Stockholm was SEK 879, representing a total increase of around 9 percent or an average of around 1 percent a year over the past 10 years. In the county as a whole the increase in RevPAR has been slightly higher than in

the City of Stockholm, at around 10 percent for the same period, with average annual growth of just over 1 percent. In Stockholm County, excluding the City of Stockholm, the increase was slightly weaker, at just under 9 percent, or an average of just under 1 percent a year over the 10 years between 2008 and 2017.

Seasonal variationSales of rooms vary over the year, but sales are usually strongest in May in the spring and from September to November in the autumn. The distribution of oc-cupied rooms over the year has decreased since 2008, owing largely to an increase in the number of leisure travellers which offsets the loss of business travellers during holiday periods.

With regard to variations in ADR over the year, the pattern largely corresponds to equivalent varia-tions in the occupancy rate. To even out the seasonal effect and to maximise revenue, hotels apply flexible pricing, which means that prices are continually adapt-ed depending on demand and on the price sensitivi-ty of guests. Consequently, RevPAR, also shows the same pattern, albeit amplified by fluctuations in the occupancy rate and average price.

C O U N T Y

C I T YTarget groupsHotel guests are usually divided into two categories: business guests and private guests. Business guests that stay overnight with work and attend meetings and conferences remain the most important source of income for hotels. Business guests are less price sensitive and often have set times that they need to use hotels’ services, allowing hotels to price the seg-ment higher. Private guests’ percentage of the overall hotel market has, however, increased in recent years and now accounts for 46 percent of all stays in the City of Stockholm. Factors such as changes in patterns of travel, a growing middle class in Asia and cheaper flights have contributed to the growth of the segment.

NationalitiesInternational guests are important for Stockholm’s hotel sector. In 2017, 43 percent of all hotel guests in the City of Stockholm were from outside Sweden. The corresponding figure for surrounding munic-ipalities in the county was around 21 percent.

Over the past 10 years the number of international guests in the City of Stockholm has increased by around 1.5 million to approximately 3.7 million in 2017. The corresponding figure for the county outside

Stockholm is around 0.4 million and 0.8 million guests respectively. Guests from the Nordic region, Germany, the US and the UK constitute the main international visitors to Stockholm County (all types of accommo-dation). Countries that have become increasingly im-portant are India and China, which increased by 411 percent and 214 percent respectively compared with 2008, an average annual growth rate of around 20 percent and 14 percent, respectively.

G U E S T N I G H T S BY N AT I O N A L I T YS T O C K H O L M C O U N T Y

Photo: Invest Stockholm, Tove Freij

C O U N T Y E X C L . C I T Y

ORIGIN 2017 %1) CAGR %2)

SWEDEN 7.9 MILL ION 49 4.6

OUTSIDE SWEDEN 4.5 MILL ION 73 6.3

TOTAL 12.4 MILL ION 57 5.1

10 LARGEST VISITOR COUNTRIES TO STOCKHOLM COUNTY (ALL TYPES OF ACCOMMODATION)

1 REST OF NORDIC REGION 660,000 27 2.7

2 GERMANY 540,000 29 2.9

3 US 490,000 110 8.6

4 UK 450,000 35 3.4

5 FRANCE 170,000 17 1.8

6 ITALY 160,000 -3 -0.4

7 THE NETHERLANDS 150,000 43 4.0

8 SWITZERLAND 150,000 95 7.7

9 CHINA 140,000 214 13.6

10 INDIA 140,000 411 19.9

SEK

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden1Percentage change 2008-2017. 2Average yearly change 2008-2017.

20%

30%

40%

50%

60%

70%

80%

100

300

500

700

900

1,100

1,300

2008

2009

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2011

2012

2013

2014

2015

2016

2017

20%

30%

40%

50%

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70%

80%

100

300

500

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1,100

1,300

2008

2009

2010

2011

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2017

RevPAR ADR Occupancy

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40%

50%

60%

70%

80%

100

300

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900

1,100

1,300

2008

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2015

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2017

SEK

300

400

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700

800

900

1,000

1,100

1,200

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

City of Stockholm County excl. cityStockholm County

SEK

S E A S O N A L VA R I AT I O N I N R E V PA R I N 2 0 1 7



SEK

20%

30%

40%

50%

60%

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80%

100

300

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1,100

1,300

2008

2009

2010

2011

2012

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2014

2015

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2017


a

S I G T U N A 3 2 %

U P P L A N D S VÄ S BY 3 1 %

TÄ BY 2 1 %

S O L L E N T U N A 5 0 %

S O L N A 8 9 % L I D I N G Ö 1 0 %

S TO C K H O L M 5 %N A C K A 1 3 %

H U D D I N G E 9 %

S Ö D E R TÄ L J E 2 0 %

N O R R TÄ L J E 5 %

Of the 4,900 hotel rooms planned in Stockholm County over the next five years, 1,236 will be in the City of Stockholm. Of these rooms, 598 are located inside the city limits (number of forthcoming rooms from 1 October 2018). There is also a possibility that the market will expand by up to a further 1,600 rooms through planned projects that are currently assessed to be uncertain. Forthcoming new establishments outside the city limits are mainly concentrated in the Kista and Hässelby districts, which are expected to gain 361 and 175 rooms respectively.

The average size of new establishments in cen-tral Stockholm is around 100 rooms, which compares with around 150 rooms in the rest of the county. The reason for the relatively small new establishments in the City of Stockholm could be the prevailing high rent levels and low vacancy rate in central locations. Property owners have not been compelled to find alternative areas of use for empty office premises, which is the case in other parts of Stockholm with lower demand for office space.

Solna and Sigtuna showing strong growthTwo municipalities in the county in which strong in-creases in supply are planned are Solna with 1,741 rooms and Sigtuna with 891 rooms. These two mu-nicipalities together account for around 54 percent of the confirmed capacity increase in Stockholm county. Both municipalities are associated with large

urban development projects that will contribute to the development of tourism in each area.

Airport City in Sigtuna is to be the location for the Comfort Hotel Arlanda hotel with 503 rooms, considerably increasing the supply of hotel rooms and conference premises in the vicinity of Arlanda Airport. Arenastaden in Solna is the site of no less than six new establishments and a major expansion of Quality Hotel Friends. This will result in Solna in-creasing its capacity by around 89 percent from the current 1,950 rooms to 3,691 rooms by 2022. The added room capacity is expected to be absorbed by the market due to each new hotel’s location in Solna and the large urban development taken place here. Annordia has also taken this into account regarding the forecast of the City of Stockholm presented in chapter 4.

Relocations creating space for new hotelsIt is worth noting that two of the planned projects are the conversion of vacant offices on the outskirts of Stockholm which were vacated by the large com-panies Siemens and Astra. Siemens relocated its head-quarters in autumn 2017 from Upplands Väsby to Arenastaden and Astra decided in 2012 to close its research unit in Södertälje. The old Siemens premises will be the location for Zleep Hotels’ first establish-ment in Sweden and Elite Hotels is planning to con-vert Astra’s former property into a hotel.

Future supplyA L M O S T 4 , 9 0 0 R O O M S A R E E X P E C T E D T O B E C O M P L E T E D T H R O U G H

C O N F I R M E D P R O J E C T S O V E R T H E N E X T F I V E Y E A R S I N T H E C O U N T Y.

O N AV E R A G E , T H E C O U N T Y ’ S S U P P LY O F R O O M S I S F O R E C A ST T O I N C R E A S E

B Y A B O U T 1 0 0 0 R O O M S A Y E A R O V E R T H E F O R E C A S T P E R I O D , W H I C H

W O U L D R A I S E T H E N U M B E R O F H O T E L R O O M S B Y A R O U N D

1 3 P E R C E N T C O M PA R E D W I T H T H E C U R R E N T L E V E L .

3.

54%O F T H E C O U N T Y ’ S N E W E S TA B L I S H M E N T S A R E

F O R E C A S T T O TA K E P L A C E I N S I G T U N A A N D S O L N A .

C H A N G E S I N S U P P LY BY 2 0 2 2 V S E X I S T I N G S U P P L Y ( 1 S T O F O C T O B E R 2 0 1 8 )

Source: Annordia Research


Forthcoming changes to supplyBelow is a list of confirmed new establishments and expansions that will be carried out in the City of Stockholm and Stockholm County from 1 October 2018. A confirmed project means that there is a

signed agreement between the property owner and a hotel operator, or that through its regular market analysis Annordia has gained such information indi-cating that the project may be regarded as confirmed.

Source: Annordia Research*Central Stockholm is divided into the districts Kungsholmen (K), Norrmalm (N), Östermalm (Ö) and Södermalm (S). In addition to the geographic division of central Stockholm, two other hotel clusters have been defined: Central Business District (CBD) and Vasagatan (VG). CBD comprises all of the Old Town and parts of Norrmalm and Östermalm, including Olof Palmes gata and Birger Jarlsgatan, respectively. Vasagatan runs through CBD and mainly comprises a cluster of large business hotels. Supply increases are also planned for Stockholm suburbs Kista-Rinkeby (KR), Hässelby-Vällingby (HV) and Bromma (B).

C I T Y O F S TO C K H O L M

OPENING ESTABLISHMENT TYPE ROOMS DISTRICT

2018 COMFORT HOTEL KISTA NEW ESTABLISHMENT 194 KR

2018 STUDIO HOTEL NEW ESTABLISHMENT 167 KR

2018 MORNINGTON BROMMA LONGSTAY EXPANSION 70 B

2018 FORMER STF HOTEL GAMLA STAN EXPANSION 80 CBD

2018 VANADIS HOTELL & BAD CLOSURE -68 N

2019 HOTEL ZZZ NEW ESTABLISHMENT 17 CBD

2019 BLIQUE BY NOBIS NEW ESTABLISHMENT 249 N

2019 HOTEL VILLA DAGMAR NEW ESTABLISHMENT 71 Ö

2019 NOFO HOTEL EXPANSION 35 S

2019 HOTELL SVEAVÄGEN NEW ESTABLISHMENT 95 N

2020 HESSELBY SLOTT EXPANSION 175 HV

2020 OSCAR DEN 1:S MINNE NEW ESTABLISHMENT 62 S

2021 ELITE HOTEL STOCKHOLM PLAZA EXPANSION 57 CBD

2021 BIZ APARTMENT, BROMMA BLOCKS NEW ESTABLISHMENT 175 B

TBC BOSTAD DIREKT BROMMAPLAN CLOSURE -143 B

TOTAL 1,236

S TO C K H O L M C O U N T Y E X C L . T H E C I T Y

OPENING ESTABLISHMENT TYPE ROOMS MUNICIPALITY

2018 BEST WESTERN PLUS GROW HOTEL NEW ESTABLISHMENT 176 SOLNA

2019 STOCKHOLM HOTEL APARTMENTS NEW ESTABLISHMENT 52 SOLLENTUNA

2019 ZLEEP HOTELS NEW ESTABLISHMENT 152 UPPLANDS VÄSBY

2019 SCANDIC TÄBY EXPANSION 48 TÄBY

2019 STRAWBERRY L IVING NEW ESTABLISHMENT 487 SOLNA

2019 HOTEL AT RINGPÄRMEN 4 NEW ESTABLISHMENT 53 SOLLENTUNA

2019 CLARION HOTEL ARLANDA EXPANSION 16 SIGTUNA

2019 GOOD MORNING HOTELS NEW ESTABLISHMENT 61 SIGTUNA

2019 COMFORT HOTEL ARLANDA NEW ESTABLISHMENT 503 SIGTUNA

2019 HOTELL GEVÄRET NEW ESTABLISHMENT 24 LIDINGÖ

2019 AC MARRIOTT HOTEL ULRIKSDAL NEW ESTABLISHMENT 223 SOLNA

2019 FEJAN NEW OPENING 29 NORRTÄLJE

2019 HOTEL AT NATTSKÄRRAN 1 NEW ESTABLISHMENT 20 SOLLENTUNA

2019 NÄSBY SLOTT EXPANSION 7 TÄBY

2020 KOM HOTEL HAGAHUSET NEW ESTABLISHMENT 180 SOLNA

2020 APARTMENT HOTEL, KUNGENS KURVA NEW ESTABLISHMENT 60 HUDDINGE

2020 FORENOM ARLANDA NEW ESTABLISHMENT 120 SIGTUNA

2020 BLUE HOTEL EXPANSION 60 LIDINGÖ

2020 CLARION COLLECTION TAPETFABRIKEN NEW ESTABLISHMENT 156 NACKA

2020 ELITE HOTEL, ASTRA’S FORMER OFFICES NEW ESTABLISHMENT 160 SÖDERTÄLJE

2021 QUALITY HOTEL FRIENDS EXPANSION 251 SOLNA

2021 QUALITY AIRPORT HOTEL ARLANDA EXPANSION 191 SIGTUNA

2021 COMFORT HOTEL ARENASTADEN NEW ESTABLISHMENT 336 SOLNA

2021 CHOICE LONG STAY NEW ESTABLISHMENT 88 SOLNA

TBC SLEEPINGFOX, SOLLENTUNA NEW ESTABLISHMENT 200 SOLLENTUNA

TOTAL 3,653

U N C O N F I R M E D N E W E S TA B L I S H M E N T S , N U M B E R O F R O O M S

YEAR 2019 2020 2021 2022 TBC TOTAL

CITY OF STOCKHOLM 0 289 175 525 25 1,014

STOCKHOLM COUNTY 88 175 250 0 88 601

T H E C O N V E R S I O N O F VA C A N T O F F I C E P R E M I S E S

C O U L D B E A N E F F E C T I V E WAY O F L E A S I N G P R E M I S E S I N A R E A S W H E R E

D E M A N D F O R O F F I C E S PA C E I S D E C R E A S I N G .



Tapetfabriken in Sickla. Nordic Choice Hotels. Illustration: White architects.


3.4% AV E R A G E A N N U A L

I N C R E A S E I N T H E

N U M B E R O F AVA I L A B L E

H O T E L R O O M S I N T H E C I T Y

O F S T O C K H O L M B Y 2 0 2 2 .

STOCKHOLM 2017 2018 % 2019 % 2020 % 2021 % 2022 % CAGR 2008-17 CAGR 2018-22

ROOMS AVAILABLE1 7,735 8,113 4.9% 8,427 3.9% 8,660 2.8% 8,865 2.4% 9,133 3.0% 4.0% 3.4%

ROOMS SOLD2 5,515 5,724 3.8% 5,947 3.9% 6,150 3.4% 6,347 3.2% 6,543 3.1% 4.2% 3.5%

OCCUPANCY RATE 71.3% 70.6% 70.6% 71.0% 71.6% 71.6% AVER. 69.3% AVER. 71.1%

ADR, SEK 1,233 1,241 0.7% 1,256 1.2% 1,275 1.5% 1,297 1.7% 1,320 1.8% 0.7% 1.4%

REVPAR, SEK 879 876 -0.3% 887 1.2% 906 2.1% 928 2.5% 946 1.9% 1.0% 1.5%

Continued strong increase in supplyOver the past 10-year period the number of available rooms in Stockholm City has increased from around 14,900 to around 21,200 rooms on a daily basis (at 31st of December). Information about future supply in-creases on the City of Stockholm hotel market was provided in the previous section. In total, the con-firmed establishments and expansions add around 3,100 new rooms between 2018 and 2022. It should be noted that this number is based on changes in sup-ply from 1 January 2018, as 2018 is also included in the forecast. Together with unconfirmed expansions and Annordia’s growth forecast, the daily supply is expected to increase to around 25,000 rooms by 2022.

The historically largest addition of new hotel rooms in Stockholm occurred in 2017. Considering that new rooms are completed on an ongoing basis over the year, 2018 is also affected by the statistics of these rooms. No less than two-thirds of 2018’s increase in supply consists of hotel rooms that came onto the market in the previous year. In addition to confirmed new establishments, Annordia’s assess-ment is that more supply increases will occur by 2022. Another 575 rooms have been added to ensure the

forecast is as well judged as possible. These presumed but unconfirmed rooms for forthcoming supply in-creases have been added on an ongoing basis over the latter years of the forecast. In total, available rooms in the City of Stockholm are expected to increase by an average of 3.4 percent a year over the entire forecast period. This is a lower rate of growth than the annual average for the past 10 years, which was 4.0 percent.

The historical trend shows that significant variations occur in the rate of new establishments from year to year. As investment in new hotels requires a long-term planning horizon, these variations are not necessarily related to the prevailing economic conditions, and a new hotel could be profitable over several business cycles.

Forecast 2018–2022

A C C O R D I N G T O A N N O R D I A’ S F O R E C A S T, T H E N U M B E R O F R O O M S S O L D

I N T H E C I T Y O F S T O C K H O L M I S E X P E C T E D T O R I S E B Y A N AV E R A G E

O F 3 . 5 P E R C E N T A Y E A R B Y 2 0 2 2 . D E S P I T E C O N T I N U E D E X PA N S I O N O F

N E W H O T E L R O O M S , T H E O C C U PA N C Y R AT E I S E X P E C T E D T O A M O U N T

T O A R O U N D 7 2 P E R C E N T I N 2 0 2 2 .

4.

1.5%AV E R A G E A N N U A L I N C R E A S E

I N R E V PA R B Y 2 0 2 2 .

C I T Y O F S TO C K H O L M 2 0 0 8 – 2 0 2 2N U M B E R O F AVA I L A B L E R O O M S ( B A R S ) A N D O C C U P I E D R O O M S ( L I N E )



The growth of new hotels and

new hotel rooms has historically

varied significantly from year

to year. 2017 was the single

largest year of growth, with

more than 1,800 new hotel

rooms established in the City of

Stockholm. The historical

average rate of growth is

around 700 rooms a year.

Photo: At Six

The forecast is made in order to assess the future need for new hotel capacity in the City

of Stockholm. In order to forecast supply, the market is expanded by those confirmed

new establishments and expansions listed in the previous section based on each facility’s

expected opening date.

Uncertain establishments are only included if they are assessed to be completed by

2022. The forecast for demand is based on historical market key performance indicators.

Factors such as future economic growth, urban and infrastructure development and pat-

terns of international travel are then considered. Together, this provides a view of future

occupancy rates and whether there is scope for an additional increase in capacity.

Photo: Invest Stockholm1 Thousand in SEK 2 Thousand

0

5,000

10,000

15,000

20,000

25,000

30,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

F201

8

F201

9

F202

0

F202

1

F202

2


Stronger economy through 2019Economic conditions are key for companies and the national economy in general. According to The Swedish National Institute of Economic Research, the economic upturn in Sweden will strengthen un-til 2019 on the back of increased exports. Unem-ployment will remain at the current level and GDP growth is forecast to fall from 2.8 percent in 2018 to 1.5 percent by 2022. In addition, inflation will exceed the central bank of Sweden’s target of 2.0 percent, the key interest rate will start to be raised gradually and the Swedish krona’s value against other curren-cies is expected to strengthen.

Stockholm is assessed to be close to the top of the current economic cycle. A steadily increasing pop-ulation is acting as a catalyst for the region’s econom-ic growth. Following a long period of rising housing prices, the trend has turned resulting in a slowdown being seen. Some sectors have found it hard to recruit skilled staff and have to compete for workers, leading to higher wages and lower profitability.

The number of bankruptcies in the restaurant sector has increased over the year, albeit from very low levels. In addition to strong competition on the market, this has been interpreted by credit informa-tion companies UC and Creditsafe as an early sign

of a nascent economic slowdown. Household opti-mism about the future has slipped in recent months and will probably weigh on private travel to some ex-tent. Despite this, it is leisure travellers, both domestic and international guests, who are forecast to take up the increased supply of hotel rooms in Stockholm. A contributory factor is the weak Swedish krona, which is making foreign trips more expensive for Swedes and is making Sweden a relatively cheaper travel des-

tination for international travellers. China’s economic growth is continuing and Chinese travellers will ac-count for the largest increase in travel in the world over the next few years. One-third of all Chinese tourists who come to Sweden have Stockholm as their main destination.

C I T Y O F S TO C K H O L M 2 0 0 8 – 2 0 2 2O C C U PA N C Y R AT E , A D R A N D R E V PA R

I N R E A L T E R M S , T H E S W E D I S H K R O N A I S N O W

H I S T O R I C A L L Y W E A K , D E S P I T E S W E D E N H AV I N G H A D

A N E X T E N D E D P E R I O D O F S T R O N G E R R E A L E C O N O M I C

P E R F O R M A N C E T H A N O T H E R C O U N T R I E S .

1/3O F A L L C H I N E S E T O U R I S T S I N S W E D E N V I S I T S T O C K H O L M .

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research Photo: Hobo Hotel

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

600

700

800

900

1,000

1,100

1,200

1,300

1,400

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

F201

8

F201

9

F202

0

F202

1

F202

2

ADR RevPAR Occupancy (right)

SEK


Occupied rooms and occupancy rateAverage annual growth in the number of occupied rooms between 2018 and 2022 is forecast to amount to 3.5 percent. This figure is lower than the city’s his-torical increase of an average of 4.2 percent per year over the 2008–2017 period. Unusually strong annu-al average growth of 5.3 percent over the past three years is projected to taper off as the increase in supply stabilises at a somewhat lower level.

The forecast for 2018 is based on preliminary sta-tistics for the first half of this year. Compared with the corresponding period in 2017, the number of oc-cupied rooms has risen by 3.6 percent. The establish-ment of new hotels will continue at a relatively high pace, which is contributing to a slightly more cautious occupancy trend compared with prior years.

The weak krona is expected to attract more inter-national tourists to Stockholm. Preliminary figures on the hotel market indicate that there has been strong growth this summer compared with the previous year. The hot weather paired with a weak exchange rate has likely increased the number of visitors to Stockholm. Around 300 stops by international cruise ships have contributed to growth in the number of internation-al guests. The number of business guests is expected to remain consistent with that of last year. No major congresses or events are planned in Stockholm during

the year. Annordia’s overall assessment is continued strong growth in the number of occupied rooms for the remainder of 2018. As a result of the number of available rooms also increasing, the occupancy rate is projected to end up at 70.6 percent – a decline of 0.7 and 2.6 percentage points compared with 2017 and 2016 respectively.

Both the number of available rooms and occu-pied rooms is expected to increase by 3.9 percent in

2019, thus resulting in a stabilisation of the occu-pancy rate at 70.6 percent. The number of occupied rooms is also expected to see an annual increase of over 3 percent in the years leading up to 2022. Along-side a declining pace of new hotels being established, Annordia is of the opinion that the occupancy rate will rise to 71.6 percent in both 2021 and 2022.

C I T Y O F S TO C K H O L M 2 0 0 8 – 2 0 2 2AVA I L A B L E R O O M S , O C C U P I E D R O O M S A N D O C C U PA N C Y R AT E

T H E D E V E L O P M E N T O F N E W H O T E L S W I T H

O W N AT T R A C T I O N S , D E S I G N A N D E X P E R I E N C E S

I S G A I N I N G G R O U N D C O M PA R E D W I T H

T R A D I T I O N A L H O T E L S .

ADR and RevPARIn the first half of 2018, the City of Stockholm’s ADR rose by 0.4 percent compared with the corre-sponding period the previous year. The substantial increase in supply in 2017 and continued provision of new rooms this year is anticipated to have a damp-ening effect on prices throughout 2018, but stronger bookings in the autumn mean ADR is expected to end up at SEK 1,241 for the full year; an upswing of 0.7 percent on 2017.

The price trend for the remaining forecast year is expected to remain positive, but will fall somewhat short of the anticipated rate of inflation, affected by the considerable supply and a projected weaker eco-nomic performance. According to Annordia’s fore-cast, ADR in the City of Stockholm will amount to approximately SEK 1,320 by 2022.

RevPAR, a measure of revenue per available room, indicates the total earning capacity for a ho-tel or a hotel market. Following the extremely strong years 2015 and 2016, when RevPAR rose by more than 7 percent annually, 2017 ended with a fall of -1.2 percent. The increased number of rooms sold and persistent upswing in the average price failed to offset the substantial capacity increase, resulting in a lower occupancy rate. Constrained by a lower occupancy rate, RevPAR is expected to continue to decline and

end up at SEK 876 for 2018; a fall of -0.3 percent from the previous year.

In the past, the hotel chains have tended to try and keep price levels up even during unfavourable market conditions, at the expense of occupancy rates. However, in a market with many operators there is a risk that some hotels see opportunities to increase their market share via aggressive pricing, which in turn puts pressure on the market’s RevPAR. Accord-ing to Annordia’s assessment, such a development is possible but unlikely 2018–2019, subsequently the forecast does not take this into account.

The average rate of increase for RevPAR in Stock-holm during the forecast period is expected to be 1.5 percent, which results in a RevPAR of SEK 946 by 2022. Growth in RevPAR over the past ten years has averaged at 1.0 percent.

Growing hotel cityOverall, demand for hotel services in the City of Stockholm is set to continue growing over the next few years. Based on the market analysis presented, Annordia’s assessment is that there is scope for an additional 1,000 new hotel rooms in the city within the next five years, over and above the new establish-ments already confirmed.

SEK 1,320T H E A D R I N T H E C I T Y O F S T O C K H O L M A C C O R D I N G

T O A N N O R D I A’ S F O R E C A S T F O R 2 0 2 2 .SEK

Hotel operators frequently use

pricing models that adjust pricing

to occupancy levels to maximise

income at any given point in time.

Price levels therefore tend to covary

with the occupancy rate.

Photo: Invest Stockholm, Tove Freij

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

F201

8

F201

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F202

0

F202

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F202

2

Rooms available Rooms sold Occupancy (right)



RevenueHostels and holiday villages in Stockholm County generated a combined revenue of roughly SEK 300 million in 2017. Revenue has increased by approxi-mately SEK 100 million since 2008, corresponding to around 45 percent. Hostels, which have seen their revenue double during the same period, account for the vast majority of revenue.

The hotel market’s efficiency is usually meas-ured by examining the key ratio revenue per available room, RevPAR. In Stockholm County, RevPAR has experienced average annual growth of 1.1 percent, 2008–2017. The closest equivalent key ratio for hos-tels and holiday villages is revenue per available bed, which in Stockholm County has increased by over 30 percent over the past ten years, corresponding to an average annual growth rate of just over 3 percent.

The increase mainly occurred after 2012, which coincides with the period when the hotel market in the county experienced increases in both occupancy levels and ADRs. This indicates that there is demand for accommodation in the lower price segments of-fered by hostels and cabins as well.

SupplyIn June 2018, Stockholm County had a total of 71 hostels and six holiday villages, offering a total of over 6,800 beds. Also in June this year, the number

of campsites totalled 35. Of all the hostels, around 40 percent were within the City of Stockholm. This was slightly above the county’s average, since 65 per-cent of available beds were represented in the city. The supply of beds in holiday villages has fallen since 2008, while the number of beds in hostels has risen by around 9 percent. All holiday villages were outside the City of Stockholm in the surrounding municipal-ities of Österåker, Värmdö, Huddinge, Haninge and Norrtälje.

OccupancyThe occupancy rate for both cabins and hostels is lower today than the figure ten years ago. Occupancy levels saw a sharp decline after 2008, but over the past five years the figure has begun to rise again, primarily for hostels. An increase in the number of internation-al guests and a reduced supply have helped boost the occupancy rate. Due to the nature of the campsites, no corresponding comparable statistics are available.

Number of guest nightsGuest nights at hostels, holiday villages and campsites as a proportion of the total number of guest nights in the county have fallen by 3 percentage points since 2008. However, the trend in the City of Stockholm was slightly positive between 2012 and 2017, as a re-

Hostels, holiday villages and campsites

H O S T E L S , H O L I D AY V I L L A G E S A N D C A M P S I T E S A R E PA R T O F

T H E C O M M E R C I A L A C C O M M O D AT I O N M A R K E T I N S T O C K H O L M C O U N T Y.

T H E S E E S TA B L I S H M E N T S P R O V I D E F O R A L M O S T 1 . 6 M I L L I O N

O V E R N I G H T S TAY S A Y E A R , W H I C H C O R R E S P O N D S T O J U S T O V E R

1 0 P E R C E N T O F A L L G U E S T N I G H T S I N T H E C O U N T Y.

5.

Photo: Generator Hostel

N U M B E R O F G U E S T N I G H T S F O R H O S T E L S , C A M P S I T E S A N D H O L I D AY V I L L A G E S

T H E N U M B E R O F D O M E S T I C G U E S T S AT H O S T E L S , H O L I D AY V I L L A G E S

A N D C A M P S I T E S I N T H E C I T Y O F S T O C K H O L M R O S E B Y R O U G H L Y 1 6 P E R C E N T

B E T W E E N 2 0 1 2 A N D 2 0 1 7 . AT T H E S A M E T I M E , T H E N U M B E R O F G U E S T S F R O M

C O U N T R I E S O U T S I D E E U R O P E I N C R E A S E D B Y O V E R 3 0 0 P E R C E N T.

sult of greater demand for hostels. The total number of guest nights in the county amounted to around 1.6 million in 2017; an increase of roughly 10 percent since 2008. In the City of Stockholm, the number of guest nights rose by 32 percent in the same period, to just over 0.9 million.

More opting for hostelsWhen it comes to hostels in the county, the num-ber of guest nights was roughly 22 percent higher in 2017 compared with 2008. International guests have accounted for much of this trend, with guest nights

increasing by 57 percent. The number of guest nights from countries outside Europe has risen by almost 300 percent over the past ten years, while the num-ber of domestic guest nights has dropped by around 9 percent. In the City of Stockholm, the trend for hostels has been even stronger, with the number of guest nights rising by around 33 percent between 2008 and 2017.

The number of domestic guest nights has also grown, with an increase of roughly 6 percent. How-ever, like Stockholm County, the City of Stockholm has seen a sharp increase in guest nights from inter national

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Holiday Villages Camping HostelsSource: Swedish Agency for Economic and Regional Growth/Statistics Sweden


O C C U PA N C Y R AT E S F O R B E D S I N H O S T E L S A N D H O L I D AY V I L L A G E S

60%O F T H E C O U N T Y ’ S H O S T E L S A R E

O U T S I D E T H E C I T Y O F S T O C K H O L M .

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

Beds in holiday villages

25%

30%

35%

40%

45%

50%

55%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Beds in hostels

The number of domestic guests at hostels, holiday villages

and campsites in the City of Stockholm rose by roughly 16

percent between 2012 and 2017. At the same time, the

number of guests from countries outside Europe increased

by over 250 percent.

Photo: First Camp

Photo: Invest Stockholm, Henrik Trygg

R E V E N U E F O R H O L I D AY V I L L A G E S A N D H O S T E L S2 0 0 8 - 2 0 1 7

HOSTELS HOLIDAY VILLAGES

REVENUE PER OCCUPIED BED REVENUE PER OCCUPIED BED

2008 SEK 103 SEK 41

2012 SEK 105 SEK 42

2017 SEK 141 SEK 54

CHANGE 08-17 36% 30%

CAGR 08-17 3% 3%

HOSTELS HOLIDAY VILLAGES CAMPSITES

BEDS BEDS SITES CABINS

2008 5,026 1,117 3,630 380

2012 5,734 1,148 3,465 380

2017 5,485 843 3,448 410

CHANGE 08-17 9% -25% -5% -4%

CAGR 08-17 1% -3% -1% 1%

S U P P LY A N D R E V E N U E F O R H O L I D AY V I L L A G E S A N D H O S T E L S2 0 0 8 - 2 0 1 7


guests, with a figure of 56 percent. Holiday villages account for a negligible proportion of the total ac-commodation market in the county. Between 2008 and 2017, the number of annual guest nights from both domestic and international guests declined by a total of just over 40 percent.

The number of international guests fell by a re-markable 91 percent from already low levels, which indicates that demand for overnight stays in holiday villages is almost exclusively from domestic guests. Between 2008 and 2017, campsites in the county saw

weak growth in the number of guest nights of around 3 percent. Demand from international guests has fall-en, while the number of domestic guests has risen by roughly 6 percent.

At campsites within the City of Stockholm, the total number of guest nights has risen by 26 percent, while the number of domestic guests has doubled. Campsite operations are of a seasonal nature and are also affected by weather conditions, which means that occupancy levels can vary considerably from year to year.


Photo: Airbnb

When it comes to the sharing economy within the ac-commodation sector, Airbnb is the biggest operator. The company was established in 2008 and is now the world’s largest P2P platform for private rentals. Air-bnb offers over five million rentals in 191 countries (2017) and is larger than the world’s five biggest ho-tel chains combined, in terms of number of rooms1. Airbnb has thus become an established and leading marketplace for private letters.

In Sweden, in legal terms, P2P platforms fall within the remit of standard subletting and conse-quently require permission from a landlord or board when renting out a tenancy or tenant-owned property. Rent-setting for subletting of tenant-owned proper-ties has essentially been deregulated since the change in the law in 2013, which allows for competitive rents that may partly fuel the rise of P2P rentals.

P2P in StockholmThe first rental in Stockholm was arranged in sum-mer 2010. Since then, the number of rentals has seen a strong increase – last year the number of rentals totalled around 3,3002 in Stockholm County, which corresponds to an increase of roughly 30 percent compared with 2016. Up until July 2018, Airbnb had arranged around 3,7002 rentals, of which the City of Stockholm accounted for just short of half3. The sharp increase in the number of rentals until July 2018 compared with the previous year is likely due to the hot weather this summer and a weaker krona, which has attracted international guests.

The number of Airbnb rentals accounts for just under 10 percent of the number of hotel rooms in Stockholm County. The proportion is lower if hos-

tels, holiday villages and campsites are included in the calculation. In relation to the housing stock, the pro-portion of Airbnb rentals in Stockholm is relatively low compared with other European cities. This may

be due in part to housing associations’ restrictions on subletting and requirements that the tenancy holder must live in their rented property, which may pose an obstacle for the continued establishment of P2P rentals in the Swedish market.

Strong but declining growth rateLast year, around 345,000 guest nights were booked via Airbnb in the City of Stockholm. Both the num-ber of booked guest nights and available rentals have risen since 2015. However, the rate of growth has di-minished somewhat, which indicates that the service has passed the expansive start-up phase.

Nonetheless, last year the number of guest nights for Airbnb rentals rose by more than 20 percent compared with 2016, which is roughly 15 percentage points higher than growth in the number of guest nights for hotels in the City of Stockholm during the corresponding period. It should, however, be emphasised that the increase is from low levels in a

I N C O N J U N C T I O N W I T H T H E A D VA N C E O F T H E S H A R I N G E C O N O M Y

D U R I N G T H E 2 0 1 0 S , T H E R E H A S B E E N A S U B S TA N T I A L I N C R E A S E I N T H E

N U M B E R O F D I G I TA L A G G R E G AT O R S E R V I C E S . T H I S M E A N S T H AT

T R A D I T I O N A L O P E R AT O R S A R E U N D E R P R E S S U R E O N E S S E N T I A L L Y A L L

M A R K E T S , A N D T H E A C C O M M O D AT I O N M A R K E T I S N O E X C E P T I O N .

P2P platforms

6.C H A N G E I N N U M B E R O F R O O M S A N D B O O K E D N I G H T S

C O M PA R E D W I T H P R E V I O U S Y E A R

Source: Airdna, Annordia Research

1/3P R O P O R T I O N O F A I R B N B O F

T H E T O TA L S U P P L Y O F R O O M S I N S O M E O F

T H E C O U N T Y ’ S M U N I C I PA L I T I E S .

1)Business Insider, August 2017. 2)Statistics taken from Inside Airbnb, processed by Annordia Research. 3)Airdna. 4)Total supply of rooms relates to the sum of hotel rooms and active Airbnb rentals.

-40%

-20%

0%

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augu

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nove

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dece

mbe

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may june july

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sept

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mar

s

april

may

june july

2016 2017 2018

Number of rooms Booked nights

CITY ACTIVE RENTALS* PROPORTION OF HOUSING STOCK*

CITY OF STOCKHOLM 2,600 0,5 %

OSLO 4,200 1,4 %

BERLIN 15,800 0,8 %

BARCELONA 19,500 2,9 %

Source: Swedish Union of Tenants

* At june 2017

A I R B N B O B J E C T S A S S H A R E O F H O U S I N G S TO C K

growth market. Airbnb’s share of the accommoda-tion market looks somewhat different in the rest of the county outside the City of Stockholm. An analysis in July 2018 revealed that Airbnb rentals accounted for over a third of the total supply of rooms4 in 11 of

25 municipalities. Furthermore, in all municipalities in the county (with the exception of Upplands Väsby), a higher occupancy rate for Airbnb rentals was noted than the average for the corresponding key ratio in the county.

45%O F T H E C O U N T Y ’ S S U P P L Y WA S I N T H E C I T Y

O F S T O C K H O L M I N J U L Y 2 0 1 8 .


The typical Airbnb guest The primary target group for Airbnb is younger, pri-vate guests travelling during the summer months. The market for P2P accommodation is therefore charac-terised by significant seasonal variation in terms of both supply and utilisation. The occupancy rate is highest during late summer, which is to some extent consistent with the traditional hotel market, but with higher monthly variations.

The typical Airbnb guest in the City of Stockholm stays for an average of 15 nights, compared with the hotel guest’s two nights. One explanation for the high average number of guest nights may be that Airbnb rentals are largely let for extended periods to people looking for housing. The housing shortage in the City of Stockholm may therefore mean that some guests are treating Airbnb as an alternative on what is a slug-gish housing rental market.

The guests are almost exclusively made up of international travellers, of which the ten largest in-bound cities to the City of Stockholm accounted for roughly 25 percent of the total number of guests in 2017. Most travellers came from London and New

York, with 8 and 4 percent respectively of the total number of guests. These were closely followed by guests from Paris, Berlin and San Fransisco.

Concluding commentsDiscussions are under way in the hotel sector as to how Airbnb is impacting on the hotel market. Despite the rapid rise in P2P platforms in recent years, the general

feeling is that hotels are not being affected to a great extent. Airbnb rentals also make up a very low pro-portion of the total supply of rooms in Stockholm County. On the contrary, Airbnb may in fact comple-ment the hotel market and attract new target groups.

Sources: Airdna, Statistics Sweden, Annordia Research

15N I G H T S : AV E R A G E L E N G T H

O F T H E T Y P I C A L A I R B N B G U E S T ’ S S TAY.

AVA I L A B L E R O O M S A N D O C C U PA N C Y R AT E I N T H E C O U N T Y AT J U L Y 2 0 1 8 E X C L U D I N G C I T Y O F S T O C K H O L M

O C C U PA N C Y R AT E S F O R H OT E L S A N D A I R B N B I N C I T Y O F S TO C K H O L M , 2 0 1 6 – 2 0 1 7

40%

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janu

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mar

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july

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embe

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june

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2016 2017

Hotels Airbnb

Photo: Airbnb

0%

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sö

Vaxh

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Sund

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Dan

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55% reference valueAverage occupancy for hotels in the county

Occupancy AirbnbAirbnb-rooms as share of hotel rooms

10%I S T H E S H A R E O F A I R B N B R E N TA L S I N R E L AT I O N T O

T H E N U M B E R O F H O T E L R O O M S I N T H E C O U N T Y.

Sources: Statistics Sweden, Airdna, Annordia Research


Photo: Clarion Hotel Sign

nership with Vi Invest and aims to establish most of the hotels within the next five to ten years. The first AC Hotels by Marriott hotel will be established in Ulriksdal Solna, with opening scheduled for the end of 2019.

Mornington Hotel is opening a new hotel in Brom-ma in the extended stay segment under the name Mornington Longstay, with 100 new apartments. 30 apartments have already opened and the remaining 70 apartments will be available later in the autumn.

The ten largest operators run a total of one quarter of the county’s hotels, corresponding to over half of all rooms in the county. Scandic Hotels alone has roughly 19 percent of the county’s supply of rooms and around 23 percent of the supply in the City of Stockholm. The majority of the biggest operators’ establishments are within the full-service segment and over 40 percent of the hotels in the county are positioned in the medium and upper price segments. Some 30 percent of the establishments in the county are located in Norrmalm, while roughly 16 percent are evenly distributed across Östermalm and Södermalm.

Scandic Hotels acquired Finnish Restel’s hotel op-erations including 43 hotels in 2017, and accordingly became the market leader in Finland and the largest hotel operator in the Nordic region. Scandic Ho-tels has completed several acquisitions previously. In 2014, for example, the company consolidated its portfolio with holdings in both Norway and Sweden via the purchase of Norwegian chain Rica’s 72 hotels.

Nordic Choice Hotels has announced a major invest-ment in Solna’s Arenastaden. Quality Hotel Friends will expand capacity to more than 600 rooms with the addition of 251 new rooms, which means the hotel will be the biggest in the Stockholm region. The hotel will be complemented by a Comfort Hotel at Arenas-taden in the lower price segment, with 336 rooms and an extended stay hotel with 88 apartments. Moreover, there are plans to develop the company’s headquar-ters in connection with the hotels, which are expected to open in 2021.

Ligula Hospitality Group increased market share in the Stockholm market last year via the opening of a new Motel L in Älvsjö. Together with Fastighets AB Balder, the company also entered the German market in 2018 via the acquisition of seven hotels in six loca-tions in Germany.

Radisson Hotel Group, formerly Carlson Rezidor, is one of the two non-Nordic companies operating in the Stockholm market. The company increased its hold-ing in the Nordic region via the acquisition of two hotels in Helsinki in 2017. Looking ahead, Radisson Hotel Group is also planning to launch its Radisson RED and Radisson Collection brands in the Nordic capitals.

Elite Hotels’ portfolio has historically included full-service hotels in the upper price segment, but in recent years the company has developed the Hotel Bishop Arms brand, which offers a lower price lev-el. In the Stockholm market the company intends to expand with a destination hotel and spa attached in Södertälje, scheduled to open in autumn 2020.

Forenom has increased its presence considerably in the Swedish market via the acquisition of StayAt in the first quarter of 2018. The acquisition includ-ed 700 hotel apartments in Stockholm, Malmö and Lund. The move means the company now holds the title of Sweden’s largest apartment hotel chain, which is consistent with its growth strategy of becoming sector leader in Northern Europe by 2020.

Nobis opened its first hotel outside Sweden at the end of 2017 – Nobis Hotel Copenhagen, with 77 rooms. In spring 2019, the company will expand its market presence in the City of Stockholm via the opening of Blique by Nobis, with 249 rooms.

JT Gruppen runs the chain Connect Hotels and has not announced any new plans for expansion in or outside the Stockholm region.

Marriott International acquired Starwood Hotel & Resorts in 2015, which means it is now the world’s largest hotel group in terms of number of rooms. The company is planning to expand its presence in the Stockholm region through its AC Hotels by Mar-riott brand. The company has been involved in a part-

Largest operators in the county

T H E H O T E L M A R K E T I N S T O C K H O L M C O U N T Y I S P R I M A R I L Y

D O M I N AT E D B Y N AT I O N A L A N D N O R D I C O P E R AT O R S . S I X O F T H E T E N

B I G G E S T O P E R AT O R S A R E L O C AT E D I N S W E D E N . O F T H E R E M A I N I N G

F O U R O P E R AT O R S , H A L F A R E N O R D I C , O N E I S E U R O P E A N A N D

O N L Y O N E O P E R AT O R I S N O N - E U R O P E A N .

7.

N U M B E R O F H OT E L S A N D R O O M S T H E TA B L E I S B A S E D O N H O T E L S R U N B Y T H E R E S P E C T I V E O P E R AT O R . H O T E L S U N D E R L I C E N S E D N A M E S

O R F R A N C H I S E A G R E E M E N T S A R E E X C L U D E D F R O M T H E L I S T O F T H E N U M B E R O F H O T E L S I N S T O C K H O L M C O U N T Y.

CITY OF STOCK-HOLM

COUNTY EXKL. STOCKHOLM

STOCKHOLM COUNTY GROUP

NR GROUP HOTELS ROOMS HOTELS ROOMS HOTELS ROOMS LOCATION HOTELS1 ROOMS1

1 SCANDIC HOTELS GROUP 20 5 251 9 1 807 29 7 058 SWEDEN 280 55 000

2 NORDIC CHOICE HOTELS 12 3 955 4 1 154 16 5 109 NORWAY 188 33 000

3 RADISSON HOTEL GROUP 3 1 043 2 599 5 1 642 BELGIUM 1 423 224 000

4 ELITE HOTELS 6 1 024 1 186 7 1 210 SWEDEN 37 5 000

5 LIGULA HOSPITALITY GROUP 8 1 088 1 117 9 1 205 SWEDEN 39 4 600

6 FORENOM 4 600 1 255 5 855 F INLAND 16 1 800

7 NOBIS 3 370 2 207 5 577 SWEDEN 7 650

8 JT GRUPPEN 3 347 1 131 4 478 SWEDEN 5 620

9 MARRIOTT INTERNATIONAL 1 465 - - 1 465 USA 6 520 1 277 000

10 MORNINGTON HOTEL 2 438 - - 2 438 SWEDEN 2 440

Source: Annual accounts for 2017 for group level, others at 30 September 2018.1Refers to the total number of hotels and rooms in the group, incl. any franchise agreements, excl. private apartments outside hotel facilities as per 2017 annual accounts.

33%O F T H E T O TA L S U P P L Y O F

R O O M S I N T H E C O U N T Y B E L O N G T O

T H E T W O L A R G E S T O P E R AT O R S .


Definitions

TYPES OF ACCOMMODATION

FULL SERVICE

Hotels that often have a broad range of facilities and amenities, such as meeting venues, recreational spaces, bars and restaurants. The minimum requirement is an à la carte restaurant that is open to the public five eve-nings week. Guests usually stay at the hotel in connec-tion with activities in the vicinity that are not linked to the hotel’s own operations.

SELECT SERVICE

Hotels that offer limited food and beverage sales compared with a full-service hotel. For example, there may be a lunch restaurant, dining room with evening buffet for hotel guests or a lobby bar serving light hot and cold meals. In other respects, the hotel’s facilities and range of services may be comparable with that of a full-service hotel. Guests usually stay at the hotel in connection with activities in the vicinity that are not linked to the hotel’s own operations.

LIMITED SERVICE

Hotels that offer a limited range of services com-pared with a full-service hotel. No food or beverage sales other than in the form of a shop selling items such as sandwiches and salads. Guests usually stay at the hotel in connection with activities in the vicinity that are not linked to the hotel’s own operations.

RESORT

Hotels situated in a separate location, often in the countryside. The hotel will often have extensive rec-reational facilities and well-established conference facilities. The range of services is similar to that of a full-service hotel, with the difference being that guests often visit the hotel in connection with an ac-tivity that is directly associated with the hotel’s own operations.

CONVENTION

Hotels that offer a range of products and services designed for large trade fairs, congresses and events. The hotel may have its own banquet halls and exhibi-tion space, or work in partnership with an exhibition venue in the vicinity. The range of services is similar to that of a full-service hotel, with the difference be-ing that guests often visit the hotel in connection with an activity that is directly associated with the hotel’s own operations.

CONFERENCE CENTRE

Hotels where the majority of sales are generated by conference guests or private groups. Hotels often apply package pricing that includes accommodation, meeting venues, food and drink and conference ser-vices. The range of services is similar to that of a full-service hotel, with the difference being that guests often visit the hotel in connection with an activity that is directly associated with the hotel’s own operations.

EXTENDED STAY

Hotels focused on guest stays of five nights or more. The interior and layout of the rooms tend to be similar to that of small apartments and they contain cooking facilities. Pricing is often based on monthly or annual agreements.

OTHER HOTEL DEFINITIONS

OCCUPANCY RATE

Also referred to as capacity utilisation and indi-cates the number of occupied rooms in relation to the number of rooms available.

REVPAR – REVENUE PER AVAILABLE ROOM

Accommodation revenue per available room is an accepted KPI in the hotel sector and is calcu-lated as the ratio between accommodation rev-enue and the number of available rooms. This KPI can also be calculated by multiplying the average price by the occupancy rate.

ADR

Average daily rate, also referred to as accommo-dation revenue per occupied room and is the average price for all occupied rooms, excluding VAT and breakfast.

CAGR

CAGR is an abbreviation of the English term Compounded Average Growth Rate.


Illustration: Telegrafberget, Nacka. Ahlqvist & Almqvist Arkitekter

Stockholm Hotel Report 2018A report produced by Annordia on

behalf of Invest Stockholm.

Invest StockholmVisiting address: Drottninggatan 33

Box 16282, 103 25 Stockholm, Sweden

Phone: +46 (0)8 508 280 00

E-mail: [email protected]

Documents

Stockholm · 2 STOCKHOLM HOTEL REPORT 2018 STOCKHOLM HOTEL REPORT 2018 3 Summary 2017 was a record year. The City of Stockholm added 1,840 new rooms, which was a 7.6 percent increase